Consumers Says It Will Tear Down Dams if Sale Isn’t Approved
Consumers Energy has reached a deal to sell 13 hydroelectric dams in Michigan for $1 each. The power company says it will tear down the dams if the state doesn't approve the sale.
Hydro Dams in Michigan
Consumers Energy has owned its 13 hydroelectric dams in Michigan for more than a century. The company is seeking to sell them because they are no longer profitable. Operating the dams has become a significant financial burden, costing nine times more than other power sources in Consumers Energy’s portfolio.
The Croton and Hardy Dams in Newaygo County are two of the 13 dams Consumers Energy owns that they are trying to sell for $1 each. Consumers Energy has made the deal with Confluence Hydro, which is a subsidiary of Hull Street Energy.
Read More: Why Consumers Energy Sold 13 Dams for $1 Each
Deals of this size need state approval in order to proceed and at this time the ball is in Michigan officials' court.
Consumers Warns It May Remove Hydro Dams if Sale Is Blocked
In a power play, Consumers Energy has told Michigan regulators that if the sale of the 13 dams is not approved, the company may move forward with tearing them down. Many homes built around the reservoirs generate significant tax revenue due to their waterfront locations, but property values could drop sharply if the dams are removed.
According to MLive, Consumers Energy says the sale would save customers hundreds of millions of dollars. At the same time, the company would agree to buy back the electricity produced by the new owners for the next 30 years.
State regulators are concerned that if Consumers Energy sells the dams to Confluence Hydro, the company could quickly flip the Michigan dams to another buyer. Confluence has a track record of reselling dams, having previously sold about 40 of them.
Consumers Energy’s message to the state was clear: approve the deal or the dams will be decommissioned, a move that could financially devastate the communities built around all 13 reservoirs.
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